Moving markets today: Asian stocks surge following Wall Street on tech boost, yen strengthens, oil prices up, Apple’s shares jump on record buyback surprise, Labour party makes early gains in local elections; focus turns to US non-farm payrolls
US stocks surged on Thursday following the Federal Reserve’s unexpectedly dovish stance on interest rates, despite mixed earnings and economic reports. Asian stocks also rose on Friday, boosted by Apple’s announcement of a massive $110 billion share buyback plan, particularly benefiting the tech sector. The Japanese yen strengthened after hitting recent lows, amidst a volatile week marked by suspected interventions by Tokyo. In local elections, Labour made early gains by gaining control of Hartlepool Council and maintaining control of councils in Newcastle upon Tyne, South Tyneside, and Sunderland. Oil prices saw a slight uptick due to the possibility of OPEC+ extending production cuts, though they remained on track for weekly losses due to US economic uncertainties and limited supply disruptions amid the Israel-Hamas conflict. Gold prices were set for a second week of decline, but held steady on Friday as investors awaited US non-farm payrolls data for insights into the Federal Reserve’s monetary policy direction. Here are five key takeaways for your day.
Labour secures early victories in local elections
Labour has made early strides in local elections, seizing control of Hartlepool Council and retaining control of Newcastle upon Tyne, South Tyneside, and Sunderland City Council.
In Sunderland, the right-wing populist Reform UK party, which fielded candidates in all wards, pushed the Tories into third place in 16 out of 25 seats contested.
Analysts note that Labour was especially motivated to make gains in Hartlepool after losing the region’s parliamentary seat in a 2021 by-election. The outcome of a parliamentary by-election in Blackpool South is expected to be announced early on Friday, with mayoral race results following on Friday and Saturday, the FT reported.
Apple surprises with record $110 billion buyback, shares jump 6 per cent
Apple beat expectations with its quarterly results and forecast released on Thursday. They introduced a record share buyback program, causing a 6 per cent surge in after-hours trading.
Apple also increased its cash dividend by 4 per cent and authorized a massive $110 billion stock repurchase program, its largest ever. Though quarterly revenue dipped, it was better than anticipated. C
EO Tim Cook is confident revenue growth will rebound in the current quarter, signalling potential resilience in the smartphone market despite tough competition and regulatory hurdles, Reuters reported.
Irish services activity sees April slowdown
Irish service sector growth slowed In April, despite some decline in new business and job creation, especially in the Technology, Media & Telecoms sector. The AIB S&P Global Purchasing Managers’ Index (PMI) dropped to 53.3 from March’s 56.6, marking the slowest growth since January. However, the index has remained above 50 for over three years and two months, signalling continued expansion.
What’s coming up
Traders are eagerly anticipating the US nonfarm payroll data to be released later today, as it will likely influence the next moves in the market. This anticipation comes after Federal Reserve Chair Jerome Powell’s recent statements, reassuring investors that any changes in interest rates by the central bank are more likely to be downwards, easing concerns of potential hikes.
S&P Global is also on the schedule to release its services PMIs for both the euro area and the UK.
On the corporate front, companies like Trainline are gearing up to provide updates to their investors.
Asian stocks follow Wall Street’s lead with strong gains
US stock markets experienced positive movements, with the Dow Jones Industrial Average rising by 0.85 per cent, reaching 38,225.66, the S&P 500 gaining 0.91 per cent at 5,064.2, and the Nasdaq Composite increasing by 1.51 per cent to 15,840.96. Tech companies led the gains in the S&P sectors, while materials faced losses.
Carvana, a platform for selling used cars, witnessed a remarkable surge in its shares by 33.8 per cent due to an optimistic profit forecast. However, DoorDash saw a decline of 10.3 per cent in its stock value because of disappointing profit guidance. Similarly, Etsy’s shares slid by 15.0 per cent after falling short of Wall Street’s expectations for first-quarter sales and profit. Meanwhile, Peloton experienced a 2.5 per cent drop in its stock value following the resignation of its CEO and the announcement of workforce reduction.
In Asia, the Hang Seng Index in Hong Kong surged by 2 per cent, poised for a 5 per cent gain for the week, while markets in Japan and mainland China were closed.
The dollar index, which measures the US currency against six other major currencies, was set to record a 0.7 per cent decline for the week, marking its weakest performance since early March. The yen strengthened by 0.55 per cent to 152.80 per dollar, rebounding from a low earlier in the week.
In the commodity markets, US crude oil rose by 0.22 per cent to $79.12 per barrel, and Brent crude was at $83.84, also up by 0.22 per cent for the day. Spot gold was priced at $2,301.01 per ounce and was on track for a second consecutive weekly decline.